FITCH has downgraded Clarendon Alumina Production Limited’s (CAP) ratings following the announcement of a second national debt exchange last week.

The long–term foreign currency Issuer Default Rating (IDR) is now CCC, down from B-, Fitch said in a release yesterday.

“CAP’s ratings are directly linked to those of Jamaica,” Fitch, which also downgraded the country’s credit ratings last week, said.

“The downgrade of CAP’s ratings to CCC follows the downgrade of Jamaica’s international senior unsecured debt instruments to CCC from B- and long-term foreign currency and local currency IDRs to C from B- on

February 12.

“CAP’s ratings mirror the ratings for Jamaica’s international bonds, as an unsuccessful debt exchange could result in increased financing pressures for the sovereign,” Fitch said.

The international agency said the country’s ratings will be raised out of default shortly, when it determines that the exchange has been successful.

CAP owns a 45 per cent stake in Jamalco, a bauxite mining and alumina refinery operation, which is majority owned by ALCOA.